Question

Your answer is partially correct. Try again. Marigold Corporation issued 2,000 $1,000 bonds at 101. Each bond was issued with one detachable stock warrant. After issuance, the bonds were selling in the market at 98, and the warrants had a market price of $41. Use the proportional method to record the issuance of the bonds and warrants. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round intermediate calculations to 5 decimal places, e.g. 1.24687 and final answers to O decimal places, e.g. 5,125.) for Fredit account titles are automatically indented when am laces, , d. 246827 åndefihanangaleys to mo Account Titles and Explanation Debit Credit Cash 00 Discount on Bonds Payable LI Bonds Payable 2000000 Paid-in Capital-Stock Warrants 1 61117 61117 Click if you would like to Show Work for this question: Open Show Work

Answer 1

	Debit	Credit
Cash	2020000
Discount on Bonds payable	61117
Bonds payable		2000000
Paid in Capital-Stock Warrants		81117
Workings:
Market value of Bonds	1960000		=2000*1000*0.98
Market value of Warrants	82000		=2000*41
Total	2042000
Value assigned to Bonds	1938883		=2020000*1960000/2042000
Value assigned to Warrants	81117		=2020000*82000/2042000